Shell India to expand Hazira terminal capacity

Shell India is planning to expand its capacity at Hazira LNG regasification terminal from its present capacity of 2.5 million tonnes per annum (MTPA) to 5 MTPA.

"We may eventually expand the capacity to 10 MTPA. The expansion will be guided by the market conditions," a senior company executive said.

The Shell group is not alone, or the first one to go for expansion of its capacity. Petronet LNG which launched its Dahej terminal in early 2004, has also announced its decision to increase capacity of its terminal from present 5 MTPA to 7.5 MTPA to 10 MTPA and eventually to 12.5 MTPA.

Interestingly, in either case, the decision to increase the capacity has not been backed by any assured LNG supply commitment, which is the key in LNG business worldwide.

Petronet LNG has assured supply for up to 7.5 MTPA but beyond that its still in talks with various suppliers.

Shell group, which has stakes in liquefaction units in Australia, Oman, Indonesia and Malaysia, has not committed any of its supply to Hazira terminal or for that matter to its Indian operations.